Financial institutions can now redevelop those SRA projects, to which they had financed and are stuck. SRA comes with an amnesty scheme.
By Varun Singh
Mumbai and Slum redevelopment have a deep connection. It was a dream of many politicians to redevelop the slums of Mumbai and transform it into an international city.
However, not most of these politicians could fulfill this dream, as many developers came forward to redevelop a slum, but would leave it midway.
Many financial institutions also got into financing several developers to redevelop these projects. But yet most of these projects got stuck.
Now, SRA has come out with an amnesty scheme where it is allowing Financial institutions to carry out the redevelopment.
The scheme notice issued on May 31, is signed by the Chief Executive Officer of the Slum Rehabilitation Authority (SRA).
The notice reads, “Whereas there are several Slum Rehabilitation Schemes stalled in Mumbai and Suburban Areas for several years and there is no progress at all. The State Government has time to time taken various decisions and granted concessions in order to motivate the Developers and Societies to take necessary steps for completion of these schemes. The demonetization, Covid-pandemic and overall slowdown of economy is one of the major factors/reason for such delay in implementation of schemes. Another major reason is non-availability of sufficient funds with the developers. The Government has considered all these aspects and taken the following decision.
AMNESTY SCHEME
It is noticed by Government that several financial institutions have granted finance to SlumRehabilitation Schemes and inspite of finance the concerned Developers have failed to complete the rehab component in the schemes and also failed to pay the transit rent to eligibleslum dwellers. Due to failure of Developers there is no progress in Slum Rehabilitation Schemes and the financial institutions are also sustaining huge losses. These Financial Institutions are not on record of Slum Rehabilitation Authority and due to it the Slum Rehabilitation Authority is not in position to allow such financial institutions to complete the Slum Rehabilitation Schemes though they are willing to complete the same. So considering the interest of slum dwellers at large in such Slum Rehabilitation Schemes as well as the financial institutions having recognition/approval of RBI, SEBI, NHB will be allowed to come forward for completion of schemes to which they have granted finance. The name of such financial institutions shall be entered in the Letter of Intent (LOl) of such a scheme as Co-developer/lender.
The applicable conditions to the schemes are mentioned in Government Resolution of HousingDepartment dated 25.05.2022 bearing No. -029/..934/ and the same is available on official website of Slum Rehabilitation Authority https://www.sra.aov.in/.
Interested financial institutions are requested to submit their expression of interest to the Slum Rehabilitation Authority within a period of 45 days excluding the holidays i.e. from 07.06.2022 to 21.07.2022. Any proposal/expression of interest received thereafter shall not be entertained.
Also Read: Slum Dwellers not cooperating in Redevelopment will be removed by this Govt Body
